Hi my fixed rate two year interest just mortgage come to an back ending month,?
my payment used to be lb1008 a month but now its decrease to lb425 a month because im on the standard variable rate mortgage.
why have my payments decrease by half and is it worth me doing something about it.
Obviously im ecstatic im paying less but for how long will i pay smaller amount as im new to all this because its the first time ive bought a house two years ago.
i wont lose my home i hope because i dont apprehend the standard variable rate process.
thank you for your advice x
Answers:
convert the loan to a fixed rate mortgage... next you can be paying off some of the principle.
Those IO loans are DANGEROUS.
It is highly promising that your interest only loan NOW includes a negative amortization component. I don't know for sure minus seeing your loan, but with a decrease that big, it is possible that your topical payment does not cover ALL of the interest that should be paid. The unpaid interest is repeatedly added back into the loan. Please look at your loan documents (not your statement). This can get really messy if you don't foot at least all of the interest due. Look favourably at your statements too - it may say "minimum due" and then it may say aloud "total interest" - MAKE SURE YOU PAY THAT TOTAL INTEREST, or your loan will increase each month...not decrease. Source(s): myself....SVP of a guard
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why have my payments decrease by half and is it worth me doing something about it.
Obviously im ecstatic im paying less but for how long will i pay smaller amount as im new to all this because its the first time ive bought a house two years ago.
i wont lose my home i hope because i dont apprehend the standard variable rate process.
thank you for your advice x
Answers:
convert the loan to a fixed rate mortgage... next you can be paying off some of the principle.
Those IO loans are DANGEROUS.
It is highly promising that your interest only loan NOW includes a negative amortization component. I don't know for sure minus seeing your loan, but with a decrease that big, it is possible that your topical payment does not cover ALL of the interest that should be paid. The unpaid interest is repeatedly added back into the loan. Please look at your loan documents (not your statement). This can get really messy if you don't foot at least all of the interest due. Look favourably at your statements too - it may say "minimum due" and then it may say aloud "total interest" - MAKE SURE YOU PAY THAT TOTAL INTEREST, or your loan will increase each month...not decrease. Source(s): myself....SVP of a guard
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